#banknifty short to medium term analysis

6 days ago

Wave Structure and Labelling
The chart uses the Elliott Wave theory, which segments market movements into impulse waves (trending) and corrective waves (retracing).
Wave Labels:
Primary wave labels like (A), (B), and (C) represent a corrective wave structure.
Subwaves labeled i, ii, iii, iv, and v represent smaller impulsive moves within the corrective waves.
2. Flat Correction Pattern
The analysis highlights an Irregular Flat Correction:
Wave (A) ends at 49,654.65.
Wave (B) moves above the start of Wave (A), creating an irregular flat structure, peaking at 54,467.35.
Wave (C) is expected to drop below Wave (A)'s end, often aligning with Fibonacci extensions.
3. Fibonacci Levels
Wave 2 Retracement:
The blue shaded area marks common retracement levels for Wave 2: 50% (0.5), 61.8% (0.618), 76.4% (0.764), and 85.4% (0.854).
Wave (C) Projections:
Red and blue lines represent Fibonacci extensions:
1.236 extension at 48,518.85.
1.618 extension at 46,680.40.
These levels predict potential targets for Wave (C).
4. Invalidation Zone
A dashed line at 54,467.35 is marked as the invalid point.
The current Elliott Wave count may be invalidated if the price moves above this level.
5. Support and Resistance Zones
Orange Zone:
Acts as a support level near 49,654.65, where Wave (A) concluded.
This zone may be tested again as Wave (C) progresses downward.
6. Wave Expectations
The chart suggests the following progression:
Wave iii of (C) has reached a temporary low, and Wave iv is retracing upward.
Wave v of (C) is expected to lower the price, likely to the Fibonacci target at 1.618 (46,680.40).
7. Key Observations
Trend Direction: The current trend appears corrective, with a downward bias (as Wave (C) unfolds).
Critical Levels:
Resistance: 54,467.35 (invalidation).
Support: 49,654.65 (end of Wave (A)).
Targets: Wave (C) likely targets Fibonacci levels between 48,518.85 and 46,680.40.